The answer to this question depends on several factors, including your salary, whether you have other life insurance, your financial obligations and more. Generally, 5-7 times your current net income is recommended. However, your specific needs could be less than or greater than this recommendation.

If you smoke, you may still apply for coverage. You will qualify for non-smoker rates only if you have not used any form of tobacco products within the last 12 months. If you occasionally smoke or if you have quit smoking in the last 12 months, you are considered a smoker.

Once the policy is issued, you can apply for a change to non-smoker rates if you have gone a full 12-month period without using any form of tobacco products. Contact us and apply for a switch to non-smoker rates. You will have to complete a medical questionnaire and we will send out a nurse to collect medical evidence, most likely a urinalysis. Once our underwriters have approved your application and your eligibility is confirmed, you will be switched to non-smoker rates.

You may apply for universal life insurance if you are between the ages of 0 to age 85.

Yes, you will need to complete a medical questionnaire. Other tests may also be required based on your age and the amount of insurance you have applied for. If you are required to provide other tests, we will arrange to have a nurse visit your home or workplace at a time that’s convenient for you. All tests are at the expense of RBC Insurance.

Yes. In fact, we recommend that you review your financial goals at least once a year. Your advisor can help you review your policy and consider whether to make any changes. You can change your future premium allocation or transfer money between interest options up to four times per policy year without incurring additional fees. Please note that a market value adjustment may apply if you are withdrawing money from a guaranteed interest option.

Just like a Registered Retirement Savings Plan (RRSP), the interest you earn within your policy is not taxable as long as your policy falls within the tax-exemption limits prescribed under the Income Tax Act. Tax deferral enables your policy to grow more rapidly than an investment that is subject to taxation. We carefully manage your policy to maintain its tax exempt status. For details on how we achieve this, please speak to an advisor.

To apply for universal life insurance:

• Call 1-844-854-0526
• Have an advisor call you

Yes, you can cancel your insurance at any time by written request. You will receive the policy’s accumulation value, minus any outstanding insurance costs and applicable surrender charges if you cancel your policy during the early years of your coverage. Surrender charges are specified in your policy. A market value adjustment may also apply if you withdraw money from a guaranteed interest option. The proceeds of your cancelled policy may also be subject to taxation.

Yes. Your policy will allow you to choose how much premium you want to contribute to your policy, within the minimum premium we set to keep your policy in force and the maximum we set to keep your policy exempt from taxation. The minimum premium is specified in your policy; the maximum changes every year depending on how your policy’s accumulation value is growing.

Your policy gives you complete choice over the timing and allocation of premium payments—you can pay annually or monthly by pre-authorized debit, and you decide how your money will be invested. After we deduct a premium tax from each premium payment, we direct the balance to your policy’s interest options. Every month we deduct enough to cover the cost of insurance and a guaranteed policy fee of $10 per month.

There are various terms and payment options to choose from. A licensed RBC Insurance^® advisor can help you choose the policy that’s right for your specific needs and budget.

You may pay for your policy on a monthly or annual basis.

• If you are paying by monthly pre-authorized debit, we will automatically debit your account when you are approved for coverage.
• If you select to pay on an annual basis, we will send out an invoice for the annual premium.
• As premiums become due under the policy, we will give you 30 days after your premium due date to make your premium payment. If we do not receive your payment during this time, the insurance will terminate and your coverage ends.

Universal life insurance policies combine permanent life insurance with an investment component. A portion of each premium purchases your life insurance, while the balance earns interest that is not taxable while it remains in the policy. Because of this, you help to protect your family against the possibility that you may die, and you help to protect your financial future.

By combining insurance, tax-advantaged investing and flexible coverage options, universal life insurance from RBC Insurance can help meet your most important financial needs.

Upon your death, the policy pays out a tax-free death benefit³, which can be used to help:

• Ensure the ongoing financial security of your loved ones
• Pay any taxes associated with your estate, thereby preserving your estate assets and passing your wealth or your business, intact, to the next generation
• Provide a legacy for your favourite charity

During your lifetime, the policy’s tax-advantaged accumulation value grows tax-free, providing you with a potential source of funds for:

• Protecting your income and ensuring your family’s lifestyle
• Supplemental income in retirement
• A financial safety net in the event of an illness or disability

Yes, not only is it possible, it’s the cornerstone of effective estate planning. When your estate (such as your business, cottage or income property) passes to your heirs, it is—with the exception of your main residence—treated by Canada Revenue Agency as income to your estate. Your heirs may have to borrow money or sell off part of the estate to pay the tax. As a result, your heirs could see a much smaller benefit from your hard work and generosity.

Estate planning is one of the main reasons for buying universal life insurance. When your estate passes to your heirs, the tax-free³ insurance benefit could help to offset the taxes.

Yes, your coverage is completely customizable, allowing you to choose the best options for your needs, lifestyle and investment strategy.

A minimum premium is required to keep the policy in force. If you pay more than the minimum, then a portion of each premium goes towards investments you choose, earning interest that is not taxable while it remains in the policy. There are a number of ways you can access your policy’s accumulation value.

You are covered under the policy once you are approved, you have accepted delivery of the policy, and we have received the first premium.

Yes. You can request to reduce or increase your coverage at any time by contacting us at 1-855-665-2406. If you want to increase your coverage, new evidence of insurability and approval will be required. Your premiums will also be updated based on the new amount of insurance.

Yes. Your coverage is subject to the following exclusions:

• During the first two years of coverage, if death is due to suicide, then no benefit is payable.
• During the application process, if we are given incorrect or incomplete information regarding age, gender, health, lifestyle or smoking habits, we reserve the right to deny or adjust your benefit.
• Four definitions of disability are recognized for coverage under the disability benefit; additional exclusions apply.

Other exclusions may apply depending on optional benefits chosen.

The information above is intended as a summary only. Please see the sample policy for RBC Universal Life or RBC Universal Life with Bonus Interest for complete details on terms and conditions, including benefits and exclusions.